UK 10-year yields fall below 1 percent for 1st time in 18 months

LONDON: Brexit worries pushed Britain's 10-year government bond yield below 1 percent for the first time in 18 months on Monday as the country's still uncertain departure from the European Union added to concerns about global economic growth.

The 10-year gilt yield fell 3 basis points on the day to 0.981 percent, the lowest level since Sept. 8 2017.

Prime Minister Theresa May is battling to keep control of Britain's exit from the European Union as some in her party called on her to quit and parliament plotted to wrest the Brexit process away from her government.

May last week secured a delay to the March 29 Brexit date but Britain could. The country is now due to leave the EU on May 22 if May's deal is approved by parliament this week. If not, it will have until April 12 to outline its plans.

The uncertainty also pushed German Bund yields back below zero but Monday's fall was more pronounced in British debt.

The yield spread between 10-year British and German government bonds slid 2 bps to 101 bps, its lowest level this year.